Lupaka Gold receives community agreement – Financing imminent

Lupaka Gold (LPK.V) has now (finally) received the community agreement with the Lacsanga community. This allows the company road access to the property which was absolutely necessary to transport the ore from Invicta to a processing plant. The agreement is valid for an initial term of 10 years and is currently being registered with the authorities. Once the registration has been completed (which could take a few more weeks), the first tranche of the PLI funding will become available.

This first tranche will allow Lupaka Gold to receive the first $4.5M as part of the Invicta funding package. A second tranche of $4.5M will be made available later on, but will be depending on Lupaka’s ability to raise $2M in additional capital. This won’t be an easy task but now all community approvals have been granted and as the first tranche of the construction funding will be released, it should definitely be doable to raise the $2M to ensure the Invicta remains on track.

As the resources also contain an important copper credit (0.73% Cu in the measured resource and 0.42% in the indicated resource), the recent increase in the copper price will be very welcome to compensate for the lower silver price. Additionally, the zinc price is currently also substantially higher than assumed in the resource calculation ($1.28/lb vs $1/lb), but as the zinc component only represents a minor part of the rock value, it’s unlikely a zinc concentrate will be produced.